India, Singapore to amend tax treaty

June 24th, 2011 - 8:20 pm ICT by IANS  

New Delhi, June 24 (IANS) India and Singapore have agreed to amend their double taxation avoidance agreement to facilitate better exchange of tax related and banking information, a statement said Friday.

Central Board of Direct Taxes (CBDT) chairman Prakash Chandra and High Commissioner of Singapore to India Karen Anne Tan Ping Ming Friday signed a protocol for amendment in the existing double taxation avoidance agreement.

The two countries have agreed to amend the existing treaty and incorporate, among other things, OECD’s model article on exchange of information.

“There is recognition that effective and comprehensive exchange of information in tax matters is a vital part of the ongoing efforts of revenue authorities to tackle international tax avoidance and evasion,” the finance ministry said in a statement.

“Towards that end, India and Singapore joined hands for effective exchange of information including banking information,” it added.

In a bid to curb tax evasion and money laundering and track black money stashed abroad, India is in the process of reviewing tax treaties with many countries, especially tax havens like Switzerland and Mauritius.

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